I purchased the Amazon Paperwhite leather cover with my PW1 in October 2012, and I now use the same cover with my PW3. Despite daily use, the cover looks like new with no cracking or stretching. Also, the Kindle remains secure in the cover (it's actually difficult to get out) and the on-off feature always works as expected.
The only reservation some might have--other than cost--is the weight that the Amazon cover adds to the Kindle. When reading, the Kindle sits in my lap or on the bed, so the added weight is almost a positive for me. However, if you hold the Kindle while reading the weight could be an issue.
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